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Session #27
Financial Literacy Matters
Elizabeth CooganU.S. Department of Education
2019 FSA Training Conference for Financial Aid Professionals
December 2019
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Introductions
Elizabeth CooganSenior Advisor, Customer Experience OfficeFederal Student Aid
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Presenters
Karen L. Serna, AFCDirector, Student Money Management OfficeAustin Community College
Nick KilmerPresidentTexas Association of Collegiate Financial Education Professionals
Erin WilligDirector, Outreach and Strategic InitiativesDivision for College Readiness and Success
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Financial Literacy Matters
Financial literacy support services and resources can contribute to student success. Learn about FSA’s commitment to financial literacy and hear from
a panel of experts from the state of Texas. They will share their coordinated approach to financial literacy and provide details on their
services and resources that help students make smart financial decisions that contribute to academic and financial success.
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Who We Will Be Hearing From
Federal Student Aid
Texas Higher Education Coordinating Board
Texas Association of Collegiate Financial Education Professionals
Austin Community College
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External Data and Surveys
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Student Financial Wellness Survey
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2016 NPSAS Survey - Financial Literacy Questions
• The National Postsecondary Student Aid Study (NPSAS) examines the characteristics of students in postsecondary education, with special focus on how they finance their education
• The 2015-16 National Postsecondary Student Aid Survey (NPSAS) included questions about financial literacy
Percent of American college students giving correct answers to financial literacy questions
Learn more about NPSAS here
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Begin paying my loans during my studies
If I could do it all over again I would…
Find out exactly how much I am borrowing
Borrow less, and have a better idea of my repayment options
Take out just enough and not the maximum amount
Find other resources and research how much education would cost
Rethink how to spend my loan
Not accept refund checks to make my loan smaller
FSA Borrowers Survey
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Financial Literacy and Higher Education
• Prepared by the Financial Literacy and Education Commission (FLEC) to:
• Establish best practices for institutions of higher education regarding methods of teaching financial literacy
• Provide information to assist students with borrowing decisions
Access the report here
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Best Practices for Delivery of Financial Literacy
Financial Literacy Programs
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Recommendations for the Delivery of Financial Literacy and Education
Higher Education Institutions
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Recommendations for Engaging Students in Financial Literacy and Education
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Financial Aid Offer Letter Recommendations
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Student Loan Debt Letter Recommendations
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The Texas Higher Education Coordinating Board
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Texas Higher Education Coordinating Board
The mission of the Texas Higher Education Coordinating Board (THECB) is to provide leadership and coordination for Texas higher education and to promote access, affordability, quality, success, and cost efficiency through 60x30TX, resulting in a globally competitive workforce that positions Texas as an international leader.
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Financial Literacy and Education Matters to Texas
60x30TX STUDENT DEBT GOALBy 2030, undergraduate student loan debt will not exceed 60 percent of first-year wages for graduates of Texas public institutions.
Target 2016* 2017* 2030Goal
Student Loan Debt to First Year Wage Percentage
60% 59% 60%
Excess Semester Credit Hours Attempted
18 18 3
Percent of Undergraduates Completing with Debt
48.2% 47.2% 50%
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Developing an Informed Statewide Strategy
Financial Literacy Advisory Committee (FLAC) convened to determine ways to better advise students and parents on financial aid options and the impact of those options on students’ finances before, during, and after their college careers.
Recommendations released included:
1. Development of a personalized tool for students,
2. Expanding training for providers of financial literacy instruction, and
3. Using statewide partnerships and effective branding to communicate the importance of postsecondary education and training.
THECB Division for College Readiness and Success reviewed the FLAC recommendations in conversation with Student Financial Aid Programs and developed a plan with manageable, actionable steps to implement FLAC recommendations.
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Statewide Efforts to Impact Student Financial Wellness
Effectively communicating and disseminating financial literacy and financial aid literacy information to students, counselors, and institutions.● Integration with Generation TX
and Advise TX● Engagement on social media● Toolkits and checklists● Training for Advise TX advisers
Empowering and supporting institutions of higher education to create or further develop financial literacy and wellness programs and systems to improve student financial health.● Convened Financial Wellness
Learning Collaborative in partnership with Trellis Company
Our strategy to enhance THECB’s efforts in regards to student financial literacy and wellness includes:
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Financial Wellness Learning Collaborative
● Group of higher education professionals working to create actionable, practical tools to support institutions of higher educationas they grow their efforts to improve student financial health.
● Representatives from 4 community colleges and 9 public universities.
● Three work groups:
○ Student Programs○ Policy and Procedure○ Training Design
Efforts of all three work groups are informed by and aligned with the FLAC recommendations and FLEC best practices report.
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Student Financial Wellness Programs Survey
● Goal: better understand the scope of programs being provided to students at institutions of higher education to support their financial literacy and wellness.○ Where on campus are programs housed?
○ How are programs structured and supported?
○ Are programs being evaluated?
○ What topics are being addressed by these programs?
● Developed by Student Programs Work Group, disseminated by THECB
● Over 85 Texas institutions of higher education responded
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Texas Association of Collegiate Financial Education Professionals
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Texas Association of Collegiate Financial Education Professionals
● Created in 2013
● Peer networkof financial educators
● Made up of a diverse set of institutions,
associations, and companies
● Annual Symposium each May
● Planning & Programming Summit in Januar
● Interested in joining? Visit tacfep.com
● Memberships fees are minimal
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Texas Association of Collegiate Financial Education Professionals
Getting Started● Denton, Texas (just North of Dallas)● 39,330 students (24% Hispanic, 14% African Americ● Student Money Management Center ● Reports to Student Affairs● 4 full-time staff, 2 graduate assistants, 7 peer mentor● Specializes in peer mentor training, program assess
and marketing
The University of North Texas
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Texas Association of Collegiate Financial Education Professionals
Meeting Requirements● Huntsville, Texas (West of Houston)● 21,025 students (24% Hispanic, 19% African Americ ● Student Money Management Center● Reports to Financial Aid● 4 full-time staff, 3 peer coaches, 3 student assistants
5 student loan mentors● SB 887 (required annual Student Loan Debt Letter)● Developed a student tested debt letter expanding
student loan engagement opportunitiesSam Houston State University
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Texas Association of Collegiate Financial Education Professionals
Wading into Uncharted Territory● Lubbock, Texas (in the Panhandle)● 37,845 students (27% Hispanic, 7% African Americ● Red to Black Peer Financial Coaching Program ● 1 full-time staff, 1 graduate assistant, 2 student
assistants, dozens of volunteer financial educators advocates, and coaches
● Personal Financial Planning, Human Sciences● Life, Love, & Money 3 Credit Hour Course● Core Elective (Social & Behavioral Sciences)Texas Tech University
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Texas Association of Collegiate Financial Education Professionals
Looking to the Future● College Station, Texas (near Caldwell)● 63,694 students (22% Hispanic, 3% African Americ ● Money Education Center ● Reports to Financial Aid● 4 full-time staff, 5 student workers● ED’s Loan Counseling Experiment● Began 2017-2018 academic year● Different method, content by classification● NASFAA Enhancing Loan Counseling TaskforceTexas A&M University
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Texas Association of Collegiate Financial Education Professionals
Online Module 1: College funding resources, budgeting, the importance of timely graduation
Online Module 2: Step by step process and worksheet for creating a college funding plan
Presentation: Student loan repayment basics (repayment timeline, terms, available plans, delinquency and default, etc.)
Appointment: Analyze ability to afford the Standard Repayment Plan (and other loan repay plans if not)
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Austin Community College
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Austin Community College
● 11campuses
● 40,799 Fall 2018 enrollment
● 5,432First-time in college students● 7,500 students received the Pell Grant in fall 2018
● 2016 Student Money Management Office established
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Austin Community College: Text Messaging
“Reminders for FA info are helpful mid semester when I am swamped with
class work and not thinking of FA. It's easy to let important deadlines fall
through the cracks without the reminders.”
● 13-15% increase in fall-to-
fall persistence
● 9% increase in scholarship
submissions
● 12,500 students received
texts messages last
academic year
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Austin Community College: Emergency Aid
● Long time emergency aid program
● Revamped in 2017 to be more
accessible and available to students
● Managed by our Financial Aid Office
and our Support Center
● Where does financial literacy fit in?
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Austin Community College: Incentivized Savings
● Let’s prepare students for a financial emergency
● Partnership with a local credit union
● Earn up to $100 in cash incentives
● Last year, 95 students collectively saved $43,016
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Austin Community College: Peer Mentors
● Conduct outreach and staff tabling events
● Design and deliver mini workshops to peers
● Work on group projects that advance our
mission
● Write blogs and started a podcast
● Receive a $600 stipend; or work-study
eligible
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Austin Community College: Finding the Money
● Department of Education Title III Strengthening
Institutions Program Grant
● Approach existing funders and ask them to deepen their
commitment (scholarship donors, emergency aid donors)
● Use data to support your ask
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Questions and Answers
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Contact Information
Karen L. Serna, AFCAustin Community [email protected] | 512-223-9330
Nick KilmerTexas Association of Collegiate Financial Education [email protected] | 979-458-5314
Erin WilligTexas Higher Education Coordinating [email protected] | 512-427-6525
Elizabeth CooganFederal Student [email protected] | 202-377-3825
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APPENDIX
• Tre llis Stude nt Financia l We llne s s Surve y
• CFPB Effe ctive Financia l Education Princip le s
• What to Avoid Whe n Is suing Financia l Aid Offe rs
• 5 Things to Know Whe n Evaluating a Financia l Aid Offe r
• Financia l Lite racy Guidance from Fe de ral Stude nt Aid
• Unive rs ity of North Te xas ’ Stude nt Mone y Manage me nt Ce nte r Online Handbook (e mail to re que s t acce s s )
• Sam Hous ton Sta te ’s Stude nt Loan De bt Le tte r
• Te xas Te ch Unive rs ity’s Life , Love , and Mone y Course
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APPENDIX
• Evaluation of Aus tin Community Colle ge ’s Stre ng the ning Ins titutions Program Grant: Annual
Outcome s and Impact Re port
• Conducting a Te xt Me ssag ing Scave nge r Hunt to Promote Financia l Aid Lite racy Among Community Colle ge Stude nts
• Don’t Txt Me L8r, Te xt Me Now: Exploring Community Colle ge Stude nt Pre fe re nce s for Re ce iving a Te xt Me ssage from The ir Ins titution
